1. Field of the Invention
The present invention relates generally to inventory management and in particular, to an apparatus and method for improving inventory levels and reducing inventory run-outs by optimizing product delivery scheduling and transport utilization.
2. Description of Related Art
It is a common and complex problem to transport various grades of oil from a refinery to one or more ports via one or more ocean-going vessels. The difficulty involves scheduling transport so that demand is met at each of the ports. It is important to avoid run-outs at the ports, but at the same time it is desirable to keep transport costs as low as possible. Scheduling excessive numbers of vessels and trips to avoid run-outs is not only inefficient and costly, but also runs the risk that vessel will be unavailable for making excessive numbers of trips. The ability to meet demand is constrained by vessel availability and capacity, as well as jetty and loading line availability at the ports. Thus, there are significant challenges involved in scheduling and planning for oil distribution.